The thing that makes it bad is because it is advertised as an effective self defense martial art. I have no problem people doing things for their health and do tai chi/yoga for fitness (as long as they are not doing it thinking it is a self defense art). If they actually try to use it for self defense they will put themselves in more danger because they are not using an effective style and they will not be ready for real combat situations - that is very dangerous.
Chinese traditional arts refused to compete, cross train, and evolve with the rest of the martial arts when mma forced an evolution in martial arts and for other martial arts styles to adjust. They are now too far behind because of it. Their styles are still geared for the way the fighting was hundreds/thousands of years ago, instead of how it is now after all the years of actual combat evolution from mma/full contact competition. Plus refusing to cross train in other styles made their styles very limited and they have a knowledge disadvantage in terms of overall martial arts knowledge. They will not know how to train, or defend against styles and attacks they are not familiar with.
It's like being a hunter and only being around one certain type of animal to hunt, mix in other stronger predatory animals and they will not know what to do - they will not know what the strengths are, they will not know anything about their speed and strength, etc - and the predatory animal will either escape or kill them if they try to hunt it, because of the knowledge and experience disadvantage. That's how it is with their current situation, they are only around other martial arts similar to theirs and they refuse to cross train other arts that isn't traditional Chinese martial arts or focus on martial arts evolution.
There are exceptions like this guy trying to change the way they think about martial arts by showing what is effective and what isn't, and he's getting blacklisted, it shows you their culture and their pride with the inability to acknowledge the truth about their national traditional styles compared to modern/evolved styles from around the world.
Even the UFC champion Weili had to cross train with other martial arts to become high level, but in her videos they show traditional Chinese arts for propaganda for their national martial arts, even if those aren't the styles she's actually using or actively training in for her fights.